Boeing Faces Strike, Furloughs Thousands as Federal Mediation Stalls

Boeing’s labor negotiations have reached a critical point, with over 30,000 workers from its Seattle and Oregon facilities continuing their strike. The workers, represented by the International Association of Machinists and Aerospace Workers (IAM), are demanding better wages and the restoration of pensions. ”Boeing must deliver a contract that reflects the hard work and sacrifices that workers have made over the past decade,” said IAM President Brian Bryant, expressing frustration over the lack of progress in federal mediation talks.

Boeing CEO Kelly Ortberg announced a temporary furlough for thousands of executives, managers, and other staff in an effort to preserve cash as the strike halted production. Ortberg acknowledged the difficulty of the decision, stating, “This is a tough decision that impacts everybody, but it is in an effort to preserve our long-term future.” Affected employees will take one week of furlough every four weeks during the strike, and Ortberg himself will take a pay cut.

The union, which voted 96% in favor of striking after rejecting Boeing’s initial contract offering, is dissatisfied with the 25% wage increase proposed over four years. Workers argue that the offer does not keep pace with inflation and does not address key issues like pensions. “We will not mince words – after a full day of mediation, we are frustrated. The company was not prepared and was unwilling to address the issues,” the IAM negotiating committee stated in a letter to members.

Bruce McFarland, a Boeing employee with over 36 years of experience, criticized the company’s stance, comparing the lack of sufficient wage increases to the generous compensation packages for departing executives. “It makes us feel unvalued by the company,” McFarland said. “The pay just doesn’t cut it. It doesn’t keep up with inflation and it hurts our members.”

The financial impact of the strike is estimated to cost Boeing $100 million per day, adding to the pressure on the company’s leadership, which is already dealing with safety and quality crises. Boeing CFO Brian West announced a freeze on hiring and raises to manage costs during the strike, emphasizing the importance of keeping critical safety and customer support functions operational.